STOCKS NEWS SINGAPORE-Index highest since Aug 2011, led by CapitaLand

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Last Updated: Thu, Jan 03, 2013 06:30 hrs

Singapore shares rose to their highest since August 2011
after encouraging economic data from China, led by CapitaLand
Ltd and CapitaMalls Asia Ltd which have
significant exposure to the world's second-largest economy.

The Straits Times Index was up 0.3 percent at
3,212.44, in line with the rise in MSCI Asia Pacific ex-Japan
index of stocks.

Shares of CapitaLand, Southeast Asia's largest property
developer, rose more than 2 percent on volume of nearly 12.5
million shares, 1.4 times the average full-day volume over the
past 30 days.

CapitaMalls Asia Ltd, CapitaLand's unit which
owns, develops and operates shopping malls, gained more than 4
percent with 10.3 million shares changing hands, 1.7 times the
average full-day volume over the past 30 days.

CapitaLand said on Thursday it had overhauled its top
management and organised its businesses into four main areas -
CapitaLand Singapore, CapitaLand China, CapitaMalls Asia and The
Ascott Ltd.

Shares of Olam International Ltd rose for the
second straight session, helped by an increased risk appetite
for commodity stocks in a bullish market and a shot of
confidence from Singapore state investor Temasek Holdings.

Shares of Olam International Ltd rose for the
second straight session, helped by an increased risk appetite
for commodity stocks in a bullish market and a shot of
confidence from Singapore state investor Temasek Holdings.

Shares in the commodity firm rose as much as 4.6 percent to
S$1.72 and traded just below the level before Muddy Waters
launched an attack on Nov. 19 on its prospects and accounting
practices. The stock had fallen as much as 22 percent since the
allegations.

Last week, Olam said Temasek had raised its stake in the
company to 19 percent from around 16 percent before the Muddy
Waters attack. Temasek is backing Olam's $1.2 billion
bonds-with-warrants issue.

"We deem the move by Temasek as a potential confidence
booster in the near-term. However, we continue to believe that
there are still several medium- to long-term issues that need
addressing," OCBC Investment Research said in a report.

In a statement on Wednesday, Olam said its net debt to equity
before fair value adjustment stood at 1.81 times as of June 30,
the lowest level since its listing in 2005. It said its board is
"comfortable" with its current equity levels and gearing.

OCBC expects markets to watch Olam's acquisitions with
greater scrutiny, especially those into non-related industries,
as well as the execution of past acquisitions. It maintained its
'hold' rating and S$1.44 target price on Olam stock.